A.R.S. § 12-963: Compromise or waiver of claim

A. This state or any of its political subdivisions required by law to furnish medical care and treatment may either:

1. Compromise, or settle and execute a release of, any claim which it has pursuant to section 12-962.

2. Waive any claim it has pursuant to section 12-962 in whole or in part either for its convenience or if it determines that collection would result in undue hardship upon the person who suffered the injury or disease resulting in care and treatment.

B. Actions taken by this state or a political subdivision in connection with the rights afforded under this article shall not operate to deny the injured or diseased person any recovery for that portion of his damage not covered by this article. A release executed by the state or any of its political subdivisions shall not release a third party from any claims of the injured or diseased person except that the third party shall be entitled to offset amounts paid to the state or political subdivision if such expenses are included in the claim of the injured or diseased person.